General Mills Executes Growth Priorities, Reiterates Outlook

General Mills, Inc. GIS is benefiting from its brand strength, cost savings and portfolio reshaping to enhance market share. The company recently issued an update on the strategic priorities to deliver growth, focusing on boosting remarkability in its global brands. Simultaneously, management has reaffirmed its long-term goals and fiscal 2026 financial guidance.

Update on General Mills’ Growth Aspects

General Mills has undergone a major transformation since the launch of its Accelerate strategy, which is focused on factors including building brands, undertaking constant innovation, leveraging scale and standing for good. The company continues to focus on core markets, global platforms and key local brands with growth prospects. 

General Mills is also committed to reshaping its portfolio through prudent buyouts and divestitures. The company has reshaped nearly one-third of the portfolio, leveraging advanced digital capabilities and strategic investments to elevate the remarkability of its brands. GIS is focused on consumer-led innovations and core initiatives across its business segments.

The company looks to offer a cohesive and compelling consumer experience across its product portfolio, encompassing product, packaging, brand communication, omnichannel skills and consumer value. It further highlighted the company’s investments in top digital and technology capabilities, further delivering growth and agility. 

Additionally, it unveiled plans to continue maximizing shareholder value through key levers, including sustainable sales growth, higher margins, free cash flow conversion and returns to shareholders in the form of dividends and share repurchases. Collectively, such initiatives are helping the company effectively manage a dynamic operating landscape and deliver sustainable, long-term growth.

GIS’ FY26 & Long-Term Growth Targets

For fiscal 2026, management continues to project organic net sales to range from a 1% decline to a 1% increase, while adjusted operating profit and adjusted earnings per share (EPS) are still expected to decline 10-15% in constant currency. Free cash flow conversion is still anticipated to be at least 95%.

Over the long term, General Mills envisions organic net sales growth of 2-3%, while adjusted operating profit is likely to rise in mid-single-digit percentage. Adjusted EPS is likely to grow in mid to high single-digit percentages. Free cash flow conversion is still anticipated to grow at least 95%. GIS anticipates returning cash to its shareholders in the 80-90% band.

This Zacks Rank #3 (Hold) company’s shares have lost 3.5% in the past three months compared with the industry’s 4.3% decline.

Stocks to Consider in the Consumer Staples Space

United Natural Foods UNFI is a key distributor of natural, organic and specialty food and non-food products. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

The Zacks Consensus Estimate for United Natural Foods' current financial-year sales and earnings indicates growth of 2.4% and 167.6%, respectively, from the prior-year levels. UNFI delivered a trailing four-quarter earnings surprise of 416.2%, on average.

Celsius Holdings, Inc. CELH, which specializes in nutritional functional foods, beverages and dietary supplements, starches and nutrition ingredients, currently sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Celsius’ current financial-year earnings is expected to rise 61.4% from the corresponding year-ago reported figure. CELH delivered a trailing four-quarter earnings surprise of 5.4%, on average.

Post Holdings POST, which is a consumer-packaged goods holding company, currently carries a Zacks Rank #2 (Buy). POST delivered a trailing four-quarter earnings surprise of 21.4%, on average. 

The Zacks Consensus Estimate for Post Holdings’ current financial-year earnings indicates growth of 12.6% from the year-ago number. 

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This article originally published on Zacks Investment Research (zacks.com).

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